South Africas hedge fund industry closed out 2024 with its strongest performance to date, according to the latest Novare Hedge Fund Survey. Assets under management AUM soared 43 year-on-year to reach a record R152.7 billion, cementing the industrys place as a fast-growing pillar of the local investment landscape.
The surge in assets marked the fastest growth rate since Novare began tracking the industry 20 years ago. The R45.9 billion increase in AUM is larger than the entire industrys size before 2013, underscoring the momentum behind hedge funds in South Africa.
Growth was fuelled by R24.1 billion in net inflows from investors and R20.9 billion in performance gains. Hedge funds benefitted from strong performances in equities, bonds, and multi-strategy funds, with investors increasingly drawn to their ability to deliver absolute returns and downside protection.